Biofuels from Biomass - Novel Combustion Concepts for Sustainable Energy Development - page 32

It is based solely on non-food feedstocks to be raised on degraded or wastelands
that are not suited to agriculture, thus avoiding a possible con ict of fuel versus

food security. It is the endeavor of this policy to facilitate and bring about optimal
development and utilization of indigenous biomass feedstocks for production of
biofuels.
The goal of the policy is to ensure that a minimum level of biofuels become
readily available in the market to meet the demand at any given time. An indicative
target of 20 % blending of biofuels, both for biodiesel and bioethanol, by 2017 is
proposed. Blending levels prescribed in regard to biodiesel are intended to be
recommendatory in the near term.
The focus for development of biofuels in India is based on utilizing waste and
degraded forest and non-forest lands only for cultivation of shrubs and trees bearing
non-edible oilseeds for production of biodiesel. In India, bioethanol is produced
mainly from molasses, a by-product of the sugar industry. In future too, it would be
ensured that the next generation of technologies is based on non-food feedstocks so
as not to compete with food and feed.
Plantations of trees bearing non-edible oilseeds will be taken up on government/
community wasteland, degraded or fallow land in forest and non-forest areas.
Contract farming on private wasteland could also be taken up through the Minimum
Support Price (MSP) mechanism proposed in the policy. Plantations on agricultural
lands will be discouraged.
A major instrument of this policy is that a MSP for oilseeds should be
announced and implemented with a provision for its periodic revision so as to
ensure a fair price to the farmers. The details about implementation of the MSP
mechanism will be worked out carefully after due consultations with concerned
government agencies, states, and other stakeholders. It will then be considered by
the

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' Biofuel Steering Committee ' and decided by the ' National Biofuels Coordi-

nation Committee proposed to be set up under this policy. Different levels of MSP

for oilseeds have already been declared by certain states. Employment provided in
plantations of trees and shrub bearing non-edible oilseeds will be made eligible for
coverage under the National Rural Employment Guarantee Programme (NREGP).
Ethanol is mainly being produced in the country at present from molasses, which
is a by-product of the sugar industry. Blending up to 5 % of ethanol with gasoline
has already been taken up by the Oil Marketing Companies (OMCs) in 20 states
and 4 union territories. In order to augment availability of ethanol and reduce over
supply of sugar, the sugar industry has been permitted to produce ethanol directly
from sugarcane juice. The sugar and distillery industry will be further encouraged to
expand production of ethanol to meet the blending requirements prescribed from
time to time, while ensuring that this does not in any way create supply constraints
in production of sugar or availability of ethanol for industrial use. Blending of 10 %
ethanol with gasoline was decided to become effective from October 2008 in those
states.
In order to take care of

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fluctuations in the availability of biofuels, OMCs will be
permitted to bank the surplus quantities left after blending of biodiesel and bio-
ethanol in a particular year and to carry it forward to the subsequent year when there

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